Hotels in the town of Gondar say ongoing security issues have devastated business. Owners told the Reporter newspaper that their falling revenues have led to mass layoffs and left many of them facing serious financial distress.

Security concerns in the town have driven away both local and international tourists, stakeholders say. Gondar was once a popular tourist destination, but with visitors no longer coming, hotels that were built at great expense now stand empty.

Many hotel owners have moved to Addis Ababa, fearing the kidnappings that have become rampant in the town, the Reporter wrote. Most of the hotels are carrying bank debt and are struggling to pay their employees’ salaries and cover taxes, the paper added. The town’s Heritage Conservation and Tourism Development team leader, Ayichew Addisu, confirmed that several hotels have closed due to dwindling business and an inability to pay taxes.